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Korea Electric Power Corp (Kepco) this week stepped smartly ahead in its plans to arrange a yen denominated transaction, by mandating Daiwa SB Capital Markets, Nikko Salomon Smith Barney and UBS Warburg to act as joint lead managers for its forthcoming ¥35bn three year Euroyen bond issue. The state owned corporate was expected to appoint leads last week, but delayed its decision. According to company officials, the banks were chosen from about 10 candidates.

Nomura International has completed a $100m convertible bond issue for Taiwan's Giga-Byte Technology, one of the world's largest motherboard makers, despite torrid market conditions. Nomura was the sole lead manager and bookrunner for the issue, which was priced on Wednesday. There is also a $15m greenshoe. The five year zero coupon notes, which mature on March 28, 2006, were issued at par and are redeemable at par. Conversion price is NT$113.39 per share, equivalent to a 16% premium over the 10 day average and a 12.8% premium over the spot price at Wednesday's close of NT$100.50 in Taipei.

Four different borrowers have issued ten-year yen. Yasuda Trust Asia Pacific has done its 11th and 12th notes of the year, a ¥100 million ($0.81 million) trade followed by a ¥500 million note. Only one of its notes this year has not been ten-year yen. Toyota Motor Credit Corp did a ¥2.1 billion trade that pays a final coupon of 1.75%, Lloyds TSB issued a ¥500 million note that pays 1.5% and Westland/Utrecht Hypotheekbank did a ¥300 million trade that pays 1.4%. Although yen has been traded the most time in 2001 it has less than a 10% share of the market. Euro and US dollar maintain their popularity with an 80% share between them.

South Africa Arrangers Deutsche Bank and Standard Bank will sign in the syndicate banks on the R700m equivalent (around $100m) mining project financing for Avgold Limited by next Tuesday.

UK wine and spirits company Allied Domecq this week awarded the mandate for its benchmark offering to bookrunner Goldman Sachs, with ABN Amro and Schroder Salomon Smith Barney appointed as joint lead managers. Bankers away from the leads expect a £200m-£300m tranche in the five to 10 year sector, and a Eu300m-Eu500m deal in the five to seven year bracket. Launch is expected after a European roadshow beginning next week.

Argentine bonds went into free-fall yesterday (Thursday), dragging Brazilian bonds down with them, as investors panicked over the global equity market sell-off and worried that even Domingo Cavallo, the new Argentine economy minister, will fail to gain political support for economic reform. Argentina's benchmark FRB Brady bonds plunged more than four points to 81.90 bid by yesterday afternoon in New York, sending their stripped yield skyrocketing to 17.5% and their spread over Treasuries to 1,336bp, compared with Monday's low of 800bp.

Hopes for a more positive Latin new issue market were raised today (Monday) when Argentine bonds surged on news that the country’s new economy minister, Domingo Cavallo, had won initial approval from congress for expanded powers.

Asia * The Banksia Trust Series 2001-1

Fears of a full scale US recession took hold this week as the smaller than expected Federal Reserve rate cut sparked panic selling in stock markets worldwide, sending them plummeting as investors sought safe havens. Early in the week, the market was focused on Tuesday's FOMC meeting and there was little trading. Disappointment was in store for many investors, who had hoped for a 75bp rate cut in response to concerns about the US economy, numerous profit warnings and the fall in equities since the start of the year.

HSBC launched this week a £50m-£100m variable coupon bond for Wessex Water Services Finance, the borrowing vehicle of UK utility Wessex Water Services. The coupon will be set according to a rating grid, giving investors an uplift of 25bp for every notch that the company is downgraded below its present level of A3/BBB+. Upgrades above this level will lower the coupon by 12.5bp per notch.

France Joint mandated arrangers BNP Paribas and Crédit Agricole Indosuez have signed banks into the Eu1.68bn term loan facilities for insurance and investment holding company Eurafrance. After the success of the first round of syndication, the deal did not require general syndication.

Unlike the legendary Mr Welch, we have never pretended to have any influence other than to make some Euromarketeers smile from time to time. We can chide, irritate and niggle, but we have never for a moment claimed to be able to change the financial world. However, once in a blue moon our comments may strike home, and we had to smile ourselves when we received a call from our top German mole and the strictest disciplinarian in Europe, Fraulein Heidi von Grippenutz. The gorgeous Heidi said that our name came up in a question and answer session at Commerzbank when the fast fading and outgoing chairman, Martin Kohlhaussen was asked why, considering the extent of his revenue contributions, had the head of the securities division, Mehmet Dalman not been promoted to the Vorstand? Was it really true that the usually humourless Marty Kohlhaussen replied: "I appreciate the validity of your question but I make the decisions at this bank and not Mr Ian Kerr at EuroWeek"? Of course, Marty is quite right but who was the bounder at the back of the audience who said: "Don't bet your shirt on it Mr Kohlhaussen."